Labour must show it is willing to tackle Britain's growing welfare bill after "ducking"
reforms when it was in power, a senior party figure said today.

Frank Field, a former minister, said Labour should link benefits to how much people have contributed to the tax system.

"It is certainly [a policy] which is in tune with the public, who know that welfare bills in many instances have to go up, are very unhappy with the existing set up and who gets what from that," he told Sky News.

The Coalition is trying to bring down the benefits bill by limiting the amount each houshold can claim to up to £500 per family per week.

Mr Field said that was still a "mega sum" for people in his constituency.

"When it first came out voters reaction in Birkenhead was have you allowed this to go on for this long? Most people in see in my constituency surgeries or walking around, people talking to us, I mean ... £13,000 a year is their cap which they actually get from working.

"The idea that we’ve allowed a welfare state to pay out these sums without trying to put some element of responsibility back strikes them as well so I hope we are going to be really tough on that cap, really tough on making sure you have got to actually do certain things to get welfare and above all you’ve actually had to pay in to get it."

It comes after Harriet Harman, the Labour deputy leader, admitted working people feel "resentful" because some benefits claimants are "not pulling their weight" and are being "let off the hook".

Miss Harman, deputy leader of the Labour Party, said she is not surprised that "people feel very concerned about welfare".

Her comments are one of the clearest signals yet that Labour is prepared to tackle the benefits system.

The party has opposed many of the the Government's welfare reforms, arguing they will hurt the poor.

However, it is under pressure to respond to concerns about the unfairness in the system, as the Coalition argues the majority of people back its efforts to make sure people are better off on work than on benefits.

Speaking on the BBC's Andrew Marr Show, Miss Harman gave the clearest signals yet that Labour is prepared to start reforming welfare.

“The difficulty is for people in work, seeing their standard of living pressurised," she said.

"Understandably they feel very resentful to people who are not working. For the people who are looking for a job and can’t find work, it’s deeply frustrating. And then of course there are a small minority who don’t want to work, they’re let off the hook by the fact there is not a proper work programme."

Her remarks came as Labour today set out its vision of a more "contributory" welfare system, where there is a balance between how much money pay in taxes and how much they get out in benefits.

She suggested that people could go to the top of the waiting list for council housing if they are working or help in the community, while those who do not would have to wait longer.

Miss Harman said one of Labour's key policies is that people should take jobs offered to them after two years on unemployment benefits. She said there were three key principles being examined by the party.

"One is that work should pay, secondly, there should be an obligation to take work, and thirdly that there should be support through a contributory principle for people putting into the system as we all as taking out," she said.

Opinion polls suggest that 67 per cent of voters back the Coalition's efforts to reform the welfare system. From tomorrow, households will not be able to claim more than £26,000 each in welfare from the state.

The Coalition has also increased benefit payments by just one per cent this year, which is much lower than the rate of inflation.

This weekend, David Cameron said the welfare system had "lost its way". Writing in The Sun, he said benefits have become a "lifestyle choice for some".

"We are ending the crazy situation where people could have a bigger income by choosing to stay on benefits rather than work," he said.

"Hundreds of thousands of people have been trapped on benefits this way, with little hope and not much prospect of getting on in life. To break these people free from this trap we are making sure that being in work really pays."

The Prime Minister said the Coalition's new Universal Credit system will be a simple, single benefit to ensure people are better off working.

"This is what real fairness is all about — not just giving people a welfare cheque each month and forgetting about them, but helping people to break out of poverty, giving them the dignity and pride that comes with being in work," he said.